Vida Homeloans has introduced two changes to its lending criteria aimed at increasing flexibility for borrowers who may struggle to access mainstream mortgages.

The lender said the adjustments were part of its ongoing effort to support clients who fall outside traditional credit profiles, particularly foreign nationals and those with minor historic credit issues.

FOREIGN NATIONAL INCOME RULES RELAXED

Vida has lowered the income bar for joint applications involving at least one borrower without permanent rights to reside where the loan-to-value exceeds 75%.

Until now, the main borrower in such cases needed a minimum income of £50,000. The rule has been softened so that a combined household income of £70,000 is now sufficient.

This means two borrowers earning £35,000 each would meet the criteria. Vida confirmed that applications where the lead applicant earns at least £50,000 will continue to be accepted even if the joint income falls below £70,000.

HIGHER LIMIT FOR DISREGARDED CREDIT BLIPS

The lender has also increased the value of county court judgments and defaults it will ignore when allocating product tiers. The threshold has risen from £250 to £500 across the range.

The existing £250 limit for disregarding unsecured missed payments remains in place.

Ross Williams, head of mortgage product management at Vida Homeloans, said:“The affordability enhancement builds on the improvements we’ve delivered for Foreign National customers.

“It means that couples applying together can combine their incomes to meet eligibility requirements, providing greater flexibility and opening more opportunities for Foreign National customers looking to secure a mortgage in the UK.

“By increasing the thresholds for CCJs and Defaults we disregard, we’re making it easier for customers to secure a mortgage without being held back by historic issues — while maintaining responsible lending standards.”